The following costs result from the production and sale of 4,450 drum sets manufactured by Tight Drums Company for the year ended December 31. The drum sets sell for $295 each.

Variable Cost:
Plastic for casing	$115,700
Wages of assembly workers	$404,950
Drum stands	$155,750
Sales commissions	$106,800
Fixed costs:
Taxes of factory	$14,500
Factory maintenance	$29,000
Factory machinery depreciation	$89,000
Lease of equipment for sales staff	$29,000
Accounting staff salaries	$79,000
Administrative salaries	$159,000

Required: 1. Prepare a contribution margin income statement for the year. 2. Compute contribution margin per unit and contribution margin ratio. 3. For each dollar of sales, how much is left to cover fixed costs and contribute to income?

TIGHT DRUMS COMPANY Contribution Margin Income Statement For Year Ended December 31 \begin{tabular}{|l|r|r|} \hline Sales & & $1,312,750 \\ \hline Variable costs: & & \\ \hline Plastic for casing & $115,700 & \\ \hline Wages of assembly workers & 404,950 & \\ \hline Drum stands & 155,750 & \\ \hline Sales commissions & 106,800 & \\ \hline & & \\ \hline Contribution margin & & 783,200 \\ \hline Fixed costs & & 529,550 \\ \hline Taxes on factory & 14,500 & \\ \hline Factory maintenance & 29,000 & \\ \hline Factory machinery depreciation & 89,000 & \\ \hline Lease of equipment for sales staff & 29,000 & \\ \hline Accounting staff salaries & 79,000 & \\ \hline Administrative salaries & 159,000 & \\ \hline & & \\ \hline Income & & 399,500 \\ \hline \hline \end{tabular} TIGHT DRUMS COMPANY Contribution Margin Income Statement (partial) For Year Ended December 31 \begin{tabular}{|l|l|l|} \hline & & \multicolumn{1}{|c|}{ Per Unit } \\ \hline Sales & & $295 \\ \hline Variable costs: & & \\ \hline Plastic for casing & & \\ \hline Wages of assembly workers & & \\ \hline Drum stands & & \\ \hline Sales commissions & & \\ \hline & & \\ \hline Total variable costs & & \\ \hline Contribution margin & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline \end{tabular} For each dollar of sales, how much is left to cover fixed costs and contribute to income? (Round your answer to 2 decimal places.) For each dollar of sales, how much is left to cover fixed costs and contribute to income? TIGHT DRUMS COMPANY Contribution Margin Income Statement For Year Ended December 31 \begin{tabular}{|l|r|r|} \hline Sales & & $1,312,750 \\ \hline Variable costs: & & \\ \hline Plastic for casing & $115,700 & \\ \hline Wages of assembly workers & 404,950 & \\ \hline Drum stands & 155,750 & \\ \hline Sales commissions & 106,800 & \\ \hline & & \\ \hline Contribution margin & & 783,200 \\ \hline Fixed costs & & 529,550 \\ \hline Taxes on factory & 14,500 & \\ \hline Factory maintenance & 29,000 & \\ \hline Factory machinery depreciation & 89,000 & \\ \hline Lease of equipment for sales staff & 29,000 & \\ \hline Accounting staff salaries & 79,000 & \\ \hline Administrative salaries & 159,000 & \\ \hline & & \\ \hline Income & & 399,500 \\ \hline \hline \end{tabular} TIGHT DRUMS COMPANY Contribution Margin Income Statement (partial) For Year Ended December 31 \begin{tabular}{|l|l|l|} \hline & & \multicolumn{1}{|c|}{ Per Unit } \\ \hline Sales & & $295 \\ \hline Variable costs: & & \\ \hline Plastic for casing & & \\ \hline Wages of assembly workers & & \\ \hline Drum stands & & \\ \hline Sales commissions & & \\ \hline & & \\ \hline Total variable costs & & \\ \hline Contribution margin & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline \end{tabular} For each dollar of sales, how much is left to cover fixed costs and contribute to income? (Round your answer to 2 decimal places.) For each dollar of sales, how much is left to cover fixed costs and contribute to income